Question

Hi Ihave the solution and all thE steps for this question.:.but I am still having a hard time understanding it :( could somebody please help me walk through all the steps to this question?

1) assume that an average television costs $425 now and that the price is increasing by 2.4% each year.
A) calculate an equation relating price and time, then predict the price of a tv in 11 years.
B) when will the price. Of the tv be $2000?

Thanks!

Answer 1

price in first year =425
price in second year = 1.024 * 425
price in third = 1.024*1.024 * 425
so
A) price in n th year = 1.024^(n-1) * 425
price in 11 th year = 1.024^10 * 425
= 538.75

B) 2000 = 425 * 1.024^(n-1)
4.70588 = 1.0124^(n-1)
log 4.70588 = (n-1) log 1.024
n-1 = 65.3
n = in the 66 th year